NEW YORK (Commodity Online) : New York gold climbed overnight after equity markets dropped though the euro also tumbled to a four year low.

Gold for August delivery added $7.70, or 0.6%, to $1,217.70 an ounce on the Comex division of the New York Mercantile Exchange.

The comeback assured gold a 0.3% gain on the shortened holiday week and stopped a downward trend that had started Wednesday.

In early trade on Friday, the rising dollar had kept gold lower, but as stocks deteriorated further and the euro tumbled even more, frightened investors jumped in.

A stronger dollar is generally seen as a negative for bullion as it makes it more expensive for holders of other currencies, but that maxim has been often challenged in recent months as the dollar is seen as less problematic than the euro.

Other metals settled lower, with copper leading losses as news from Europe and a disappointing jobs report in the U.S. sent stocks reeling and investors worrying about a short-lived recovery. Silver futures set a two-month low.

The euro changed hands as low as $1.19 on Friday, and the dollar index, which compares the U.S. unit against a basket of six currencies, gained 1% to 88.03.

Concerns about Hungary's solvency took the center of concerns about Europe Friday, after comments attributed to a spokesman for the Eastern European country's prime minister.

Holdings in SPDR Gold Trust, the largest exchange-traded fund backed by gold, notched another record on Thursday,.

The ETF reported holdings of 1,289.84 metric tons, up from 1,268.54 metric tons on Wednesday.

Friday also saw reports of declining supply for gold, providing further support. Gold mine producing in South Africa, the world's top gold producer, decreased 15% in the first quarter of the year and 12% compared with the same period in 2009.